Part 4: Conformity Assessement (Management System Certification)

Many buyers are demanding their suppliers to implement a management system as a pre-requisite for doing business with them.

Management system standards have been developed by ISO since 1987 with ISO 9000 being the first of its type; subsequently in 1996 ISO 14000 series of standards were developed by ISO.

Some other organizations like Social Accountability International and WRAP which are outfit organizations of various stakeholders have also developed system standards in the field of social accountability.

OHSAS 18001 is a standard on occupational health and safety of workmen and was developed by a selection of leading trade bodies, national standards institutions and certification bodies. All these standards are very popular and demanded by the buyers as a pre-requisite to do business with them.

Buyers at all times require to be assured and need to be satisfied that products or services for which they are paying will meet their specifications and will perform as intended or as ordered. Inspection and testing during manufacture, assembly, packaging, shipping, installation and commissioning are traditional methods by which assurance is conveyed to the buyer, either through self-declaration by manufacturers/exporters or through inspections carried out by experts nominated by the buyers or through third party independent inspection bodies nominated by the buyers. Final inspection of a product is not a reliable way of assuring that the product will give the desired performance and/or satisfaction.

It is a well-known fact that the required level of quality can only be built into the product through management of processes. A properly established Quality Management System will help reduce costs, improve the conformance of the product to the buyers’ requirements and create an image of being a reliable supplier.

The ISO 9001 quality management system is generic in nature i.e. it is applicable to all sectors of industry, including manufacturing and service, and to organizations of all sizes, small or large. It is not a product standard but a system for ensuring conformity of product to customer and regulatory requirements. ISO 9001 specifies what is required to be done by an organization but does not indicate how it should be done, thus giving a lot of flexibility to run a business.

ISO has also developed some industry sector specific quality management system standards such as ISO/TS 16949 for automotive suppliers, ISO 13485 for medical devices, ISO 29001 for petroleum, petrochemicals and natural gas industry sector, etc.

ISO 14001

In addition to price and quality considerations, purchasing organizations and consumers are increasingly making decisions on the purchase of goods or services based on environmental considerations. Many buyers expect their suppliers to adopt a more environmentally responsible attitude. This new business ethos has led suppliers, in many cases, to demonstrate that they have implemented an environmental management system (EMS) and have obtained certification to ISO 14001. In other words, organizations are waking up to the fact that sound environmental management is simply sound business management.

An EMS provides a framework to help organizations identify those aspects of their business that have a significant impact on the environment and to then meet environmental objectives and targets to minimize these impacts. ISO 14001 does not establish a minimum level of environmental performance. Rather, it requires a company to achieve the objectives for environmental performance that it has set itself in its environmental policy, and also to demonstrate its commitment to comply with applicable environmental legislation and to continual improvement.

Third party certification of ISO 14001 EMS is facilitating international trade as it provides evidence of the existence of a system to prevent pollution and continual improvement of environmental performance.

OHSAS 18001

An OHSAS promotes a safe and healthy working environment by providing a framework that allows your organization to consistently identify and control its health and safety risks, reduce the potential for accidents, aid legislative compliance and improve overall performance.

OHSAS 18001 is the internationally recognized assessment specification for occupational health and safety management systems. It was developed by a selection of leading trade bodies, international standards and certification bodies to address a gap where no third-party certifiable international standard exists. Thus OSHAS 18001 is not an ISO standard.

OHSAS 18001 can be adopted by any organization wishing to implement a formal procedure to reduce the risks associated with health and safety in the working environment for employees, customers and the general public.

In 1997, Social Accountability International (SAI) was established and convened an expert, international, multi-stakeholder Advisory Board to partner in developing standards and systems to address workers’ rights. Representatives of trade unions, human rights organizations, academia, retailers, manufacturers, contractors, as well as consulting, accounting, and certification firms, by consensus, cooperated to develop the SA 8000 Standard. Published in late 1997 and revised in 2001, the SA 8000 Standard and verification system is a credible, comprehensive and efficient tool for assuring humane workplaces

SA 8000

The SA 8000 Standard is based on international workplace norms of International Labour Organisation (ILO) Conventions, the Universal Declaration of Human Rights and the UN Convention on the Rights of the Child. The SA 8000 system includes:

Child Labor: No workers under the age of 15; minimum lowered to 14 for countries operating under the ILO Convention 138 developing-country exception; remediation of any child found to be working

Forced Labor: No forced labour, including prison or debt bondage labour; no lodging of deposits or identity papers by employers or outside recruiters

Health and Safety: Provide a safe and healthy work environment; take steps to prevent injuries; regular health and safety worker training; system to detect threats to health and safety; access to bathrooms and potable water

Freedom of Association and Right to Collective Bargaining: Respect the right to form and join trade unions and bargain collectively; where law prohibits these freedoms, facilitate parallel means of association and bargaining

Discrimination: No discrimination based on race, caste, origin, religion, disability, gender, sexual orientation, union or political affiliation, or age; no sexual harassment

Discipline: No corporal punishment, mental or physical coercion or verbal abuseWorking Hours: Comply with the applicable law but, in any event, no more than 48 hours per week with at least one day off for every seven-day period; voluntary overtime paid at a premium rate and not to exceed 12 hours per week on a regular basis; overtime may be mandatory if part of a collective bargaining agreement.

Compensation: Wages paid for a standard work week must meet the legal and industry standards and be sufficient to meet the basic need of workers and their families; no disciplinary deductions.

Management Systems: Facilities seeking to gain and maintain certification must go beyond simple compliance to integrate the standard into their management systems and practices.

WRAP

The American Apparel and Footwear Association (AAFA), whose members produce 85% of sewn products sold at wholesale in the United States, gave birth to the idea of WRAP in 1998 and promotes it to this day. Other major international business and industry associations have endorsed not only WRAP’s principles but also its Apparel Certification Program.

The objective of the WRAP Apparel Certification Program is to independently monitor and certify compliance with the following standards, ensuring that a given factory produces sewn goods (apparel, footwear, etc.) under lawful, humane, and ethical conditions. Note that it is not enough to subscribe to these principles; WRAP monitors the factory for compliance with detailed practices and procedures implied by adherence to these standards.

Compliance with Laws and Workplace Regulations - Manufacturers of Sewn products will comply with laws and regulations in all locations where they conduct business.

Prohibition of Forced Labor - Manufacturers of Sewn Products will not use involuntary or forced labor -- indentured, bonded or otherwise.

Prohibition of Child Labor - Manufacturers of Sewn Products will not hire any employees under the age of 14, or under the age interfering with compulsory schooling, or under the minimum age established by law, whichever is greater.Prohibition of Harassment or Abuse - Manufacturers of Sewn Products will provide a work environment free of harassment, abuse or corporal punishment in any form.

Compensation and Benefits - Manufacturers of Sewn Products will pay at least the minimum total compensation required by local law, including all mandated wages, allowances and benefits.

Hours of Work - Manufacturers of Sewn Products will comply with hours worked each day, and days worked each week, and shall not exceed the legal limitations of the countries in which sewn product is produced. Manufacturers of sewn product will provide at least one day off in every seven-day period, except as required to meet urgent business needs.

Prohibition of Discrimination - Manufacturers of Sewn Products will employ, pay, promote, and terminate workers on the basis of their ability to do the job, rather than on the basis of personal characteristics or beliefs.

Health and Safety - Manufacturers of Sewn Products will provide a safe and healthy work environment. Where residential housing is provided for workers, apparel manufacturers will provide safe and healthy housing.

Freedom of Association & Collective Bargaining - Manufacturers of Sewn Products will recognize and respect the right of employees to exercise their lawful rights of free association and collective bargaining.

Environment - Manufacturers of Sewn Products will comply with environmental rules, regulations and standards applicable to their operations, and will observe environmentally conscious practices in all locations where they operate.

Customs Compliance - Manufacturers of Sewn Products will comply with applicable customs law and, in particular, will establish and maintain programs to comply with customs laws regarding illegal transshipment of apparel products.

A company or organization preparing for system certification should consider the following criteria for choosing a certification body:Whether the certification body is accredited by a national accreditation body. (Accreditation bodies submit accredited certification bodies to periodic surveillance audits. It is also advisable that the accreditation body be a member of IAF)

Whether the certification body has been accredited to provide certification services in your area of business (certification bodies are accredited for specific scopes of activities)

Proximity of the certification body (long distances can have significant cost implications for interaction with the certification body, as well as for the travel expenses of auditors during the pre-certification and post-certification audits)

The period of validity of certification, audit charges, certification fees and currency of payment (these may vary between certification bodies)

If certification is being obtained at the insistence of major overseas buyers, their views on the choice of certification body or accreditation body should be sought and considered

The reputation, market image and experience of the certification body

At the national and international levels certification/registration to management systems (e.g. ISO 9001, ISO 14001, OSHAS 18001, etc.) has received wide acceptance as it demonstrates the existence of good management practices employed by the suppliers. Certification here refers to issuance of written assurance by an independent external body that has audited the system of an organization and verified that it complies to the requirements specified in the applicable management system standard. This form of certification is different from product certification and under this system product cannot be marked with the system certification mark. System certification mark typically appears on letterheads, promotional brochures and other product information documents of the certified suppliers.

This slide outlines the steps for becoming certified to a management system, and for maintaining this status once you have achieved it.

System certification

Certification audit is done in two stages:

Stage 1: Adequacy audit in which readiness of company is checked which includes the check of documentation (System Manual, Procedures, other documents developed by the company, etc.) and also evidence that system has matured for certification.

Stage 2: In this audit it is verified that the company is effectively implementing the designed system.

Based upon the result of above two stages of audit, the certificate is generally issued by the certification body (CB) for a period of three years. In this three-year period, periodic surveillance audits at prescribed intervals are carried out by CB. After three years a recertification audit is required to be performed by CB.